Many people will have extended hopes on compensation and its benefits. Jack Welch, Author and Former chairman of GE Company, denotes that, If you pick the right people and give them the opportunity to spread their wings and put compensation as a carrier behind it, you almost dont have to manage them. There were some myths spread across compensation.
Myth 1: Salaries always shows positive trend means increases
Some people think that salaries will only went up and there will be constant hikes in salaries along with promotions. But it is not applicable in all situations. Fixed salary may be fixed all the time but variable pay may changes along with the changes in economic conditions like crisis and slowdown of the economy.
Myth 2: Salary hikes and increments will come year after a year
Earlier, companies use to give compensation changes throughout the year based on their best performances. Now all the companies are following a standard procedure for appraisal procedures. They are following a standard annual hike calendar for better compensation packages.
Myth 3: Changing job only may give you a hike in salary
There is a great myth that, jumping a job will give you a salary hike along with great benefits. When a job seeker changes his job, not only thinks about organization credibility, benefits and pay structure. But also thinks about learning opportunities and scope for the growth. So, it is a myth that, changing job will also give a compulsory hike in salaries. Changing job sometimes will be in expectation with growth in opportunities and benefits like part time jobs.
Myth 4: The head of HR architects the compensation structure
Most of us have a myth that compensation structure will be decided by the HR head of the company. But it true that, compensation plans will be decided by the CFO of the company. So, compensation plans will be driven by the CFO of the company and remuneration team, based on the reviews submitted by the HR head.